Term deposits 'attractive during uncertain economic times'

Term deposits are proving an attractive investment prospect for Australians who are uncertain about their financial future and concerned about risking their hard-earned cash.

This is according to personal finance journalist Annette Sampson, who said in a piece for the Sydney Morning Herald that there is "something solid and appealing" about the simplicity of term deposits.

She observed that investors are often comforted by the fact that the fact that they can clearly see what they will get when they put their funds in one of these accounts.

"To some extent, it's a flight to safety. In the post-global financial crisis world, a guaranteed investment with a fixed rate of return has a lot going for it," she explained.

This comes after figures from the Australian Bankers' Association revealed that at the end of May 2011, the amount stashed away in savings accounts and similar products was $496 billion.

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